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Where Food Comes From
(NASDAQ:WFCF)
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Rating:63Neutral
Price Target:
$13.50
▲(8.09% Upside)
Action:Reiterated
Date:08/07/26
Overall score reflects a financially stable, low-leverage business with improving operational metrics and constructive earnings-call momentum (margin expansion, operating income growth, strong cash generation, and buybacks). The main constraints are margin compression and weaker cash conversion in the financial statements, plus an expensive valuation (P/E ~39) and only neutral technical momentum.
Positive Factors
Conservative balance sheet
Very low leverage (debt-to-equity ~0.08 TTM) and sizable equity provide durable financial flexibility. This reduces bankruptcy and refinancing risk, supports continued buybacks, enables opportunistic M&A via the new shelf, and helps the company withstand cyclical shocks in agriculture without forcing asset sales.
Negative Factors
Revenue concentration in beef
Heavy exposure (~50% of revenue) to the beef supply chain leaves results tied to cattle cycles, herd sizes and commodity pricing. Structural volatility in cattle throughput and pricing can compress volumes and fees for multiple quarters, limiting predictability of top-line growth across planning horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage (debt-to-equity ~0.08 TTM) and sizable equity provide durable financial flexibility. This reduces bankruptcy and refinancing risk, supports continued buybacks, enables opportunistic M&A via the new shelf, and helps the company withstand cyclical shocks in agriculture without forcing asset sales.
Read all positive factors
Where Food Comes From (WFCF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.25M
Dividend YieldN/A
Average Volume (3M)3.42K
Price to Earnings (P/E)44.1
Beta (1Y)0.28
Revenue Growth-2.23%
EPS Growth-28.33%
CountryUS
Employees92
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding4,979,663
10 Day Avg. Volume1,853
30 Day Avg. Volume3,425
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)6.36
Price to Sales (P/S)2.38
P/FCF Ratio40.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Where Food Comes From Business Overview & Revenue Model
Company Description
Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company conducts on-site and desk audits to verify claims about livestock, food, other specialty crops, and agri...
How the Company Makes Money
WFCF primarily makes money by charging fees for services tied to verification and certification programs in food and agriculture. Key revenue streams include: (1) Program verification/certification fees: Payments from producers, processors, and br...
Where Food Comes From Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational picture: revenue growth (modest), notable improvements in gross profit, margins and operating income, strong cash generation and continued shareholder returns via buybacks. Management highlighted meaningful product diversification (RaiseWell, CARE, sustainability audits) and renewed strategic flex through a shelf registration for M&A. Offsetting these positives were a notable decline in reported net income driven by noncash digital asset valuation swings and the loss of a prior-year dividend, ongoing headwinds in the core beef business (about 50% of revenue) and limited participation in some high-risk food-safety segments. On balance, the company’s operational momentum, diversification, cash generation and shareholder-return actions outweigh the transitory and structural negatives.Positive Updates
Revenue and Verification Growth
Total revenue increased slightly to $6.6M in Q2 2026, driven by verification and certification revenue of $5.4M (versus $5.3M in Q2 2025). Six-month total revenue rose 1% to $12.0M from $11.8M, with verification and certification revenue up 3% to $9.8M from $9.5M.
Negative Updates
Q2 Net Income Decline
Net income in Q2 was $413K ($0.08/share) versus $562K ($0.11/share) a year ago — a decline of approximately 26% year-over-year. Management attributes the majority of the Q2 decline to a $240K noncash fair market value negative swing on digital assets and the absence of a prior-year $50K dividend from a divested asset.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Verification Growth
Total revenue increased slightly to $6.6M in Q2 2026, driven by verification and certification revenue of $5.4M (versus $5.3M in Q2 2025). Six-month total revenue rose 1% to $12.0M from $11.8M, with verification and certification revenue up 3% to $9.8M from $9.5M.
Read all positive updates
Company Guidance
Management did not give formal forward‑looking revenue or EPS guidance on the call; instead they provided strategic guidance and near‑term actions: re‑engaging in M&A after a roughly three‑year pause with a focus on transactions that are immediately or near‑term accretive and filing a shelf registration “in the next day or so” to increase deal flexibility (the stock traded over $20 twice this year), continuing aggressive share repurchases (≈65,000 shares repurchased in Q2 and nearly 89,500 YTD, with >$17.2M returned to shareholders since 2019) funded by strong cash generation ($1.5M cash from operations YTD and $3.4M cash at quarter end), and operational priorities to expand RaiseWell beyond beef (currently >270,000 head enrolled and beef ≈50% of revenue), grow their >50‑standard verification portfolio, and pursue service bundling to drive further revenue and margin improvement (Q2 revenue $6.6M; verification revenue $5.4M vs $5.3M LY; gross profit $2.7M, +9% YoY; gross margin 40.6% vs 37.5% LY; Q2 operating income $665K, +21% YoY; Q2 net income $413K, $0.08/share; 6‑month revenue $12.0M; verification revenue YTD $9.8M; YTD operating income $963K; YTD net income $505K, $0.10/share).Where Food Comes From Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
82
Very Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.03M | 24.89M | 25.75M | 25.14M | 24.84M | 21.93M |
| Gross Profit | 9.58M | 9.51M | 10.56M | 10.52M | 10.47M | 9.74M |
| EBITDA | 2.83M | 2.88M | 3.63M | 3.70M | 3.53M | 4.42M |
| Net Income | 1.45M | 1.54M | 2.12M | 2.15M | 1.99M | 2.96M |
Balance Sheet | ||||||
| Total Assets | 13.58M | 12.90M | 15.31M | 16.29M | 18.30M | 19.78M |
| Cash, Cash Equivalents and Short-Term Investments | 3.42M | 3.20M | 2.01M | 2.64M | 4.37M | 5.41M |
| Total Debt | 729.00K | 1.44M | 2.55M | 2.80M | 3.13M | 3.55M |
| Total Liabilities | 4.76M | 3.59M | 5.37M | 5.47M | 5.82M | 6.04M |
| Stockholders Equity | 8.82M | 9.30M | 9.93M | 10.82M | 12.48M | 13.75M |
Cash Flow | ||||||
| Free Cash Flow | 1.01M | 1.45M | 2.57M | 2.67M | 2.39M | 2.81M |
| Operating Cash Flow | 1.25M | 1.61M | 2.73M | 2.82M | 2.65M | 3.02M |
| Investing Cash Flow | 1.59M | 1.68M | -159.00K | -648.00K | -267.00K | -3.00K |
| Financing Cash Flow | -2.63M | -2.10M | -3.20M | -3.90M | -3.43M | -1.98M |
Where Food Comes From Technical Analysis
Neutral
12.49
Price Trends
12.32
Positive
12.49
Negative
12.19
Positive
Market Momentum
>-0.01
Positive
48.56
Neutral
12.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFCF, the sentiment is Neutral. The current price of 12.49 is above the 20-day moving average (MA) of 12.37, above the 50-day MA of 12.32, and above the 200-day MA of 12.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.56 is Neutral, neither overbought nor oversold. The STOCH value of 12.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WFCF.
Where Food Comes From Risk Analysis
Where Food Comes From disclosed 21 risk factors in its most recent earnings report. Where Food Comes From reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Where Food Comes From Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $62.25M | 44.08 | 16.47% | ― | -2.23% | -28.33% | |
52 Neutral | $43.38M | -3.22 | -13.83% | ― | 14.63% | 11.10% | |
46 Neutral | $9.12M | >-0.01 | -60.08% | ― | 617.83% | -107.08% | |
44 Neutral | $33.68M | -0.91 | -135.31% | ― | ― | ― | |
43 Neutral | $6.20M | -0.15 | 356.16% | ― | 83.91% | 38.02% |
* Industrials Sector Average
WFCF
Where Food Comes From
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1.10
9.78%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.